Yamana Gold Beats 2021 Guidance With 1,011,180 Gold Equivalent Ounces Produced

Yamana Gold (TSX: YRI) appears to have had a standout quarter for the final quarter of 2021. The firm last night reported its fourth quarter and full year 2021 financial results, reporting record quarterly gold equivalent ounce production of 281,388 ounces.

Production during the quarter handily beat prior guidance of 270,000 gold equivalent ounces. Likewise, the strong fourth quarter result lead to the firm beating its annual guidance for 2021, with 1,011,180 gold equivalent ounces being produced for the full fiscal year, compared to guidance of 1,000,000 ounces.

In terms of revenue, the quarter saw a total of $503.8 million, versus $461.8 million in the year ago period and $452.2 million in the third quarter. All in sustaining costs reportedly came in at $962 per ounce, while cash costs were just $642 per ounce. Net earnings meanwhile came in at $109.7 million, or $0.11 per share.

The quarterly production performance also reportedly lead to the company generating an all-time record for quarterly cash flow, which came in at $238.2 million. Free cash flow before dividends and debt repayments meanwhile came in at $119.6 million.

Also released last night by Yamana was production guidance for 2022 through to 2024. The company expects to again produce 1,000,000 gold equivalent ounces in 2022, with guidance rising to 1,030,000 ounces in 2023 and 1,060,000 ounces in 2024. All in sustaining costs meanwhile are estimated to not exceed $1,080 per ounce, while cash costs are expected to hit $725 per gold equivalent ounce.

As for its ten year outlook, the firm intends to provide a full update on this outlook every other year, with the next update slated for 2023. That being said, it expects production to grow to 1.2 million gold equivalent ounces by 2028, with the “opportunity” to climb as high as 1.5 million gold equivalent ounces by the tail end of the ten year outlook.

Yamana Gold last traded at $6.12 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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